At this Congress the question of reducing the international
letter rate was raised by Sir J. G. Ward, the Australasian delegate. In 1901 New Zealand had introduced a universal penny rate for letters, and the financial results of the change had been regarded as satisfactory. The loss of revenue was some £80,000 in the first year, reduced to £50,000 in the second. There was an increase of 35 per cent. in the number of foreign letters posted in the first year, as compared with an increase of 1.76 per cent. for the last year under the 2½d. rate.[596]
The proposal met with strong opposition and little support. The opposition was based entirely on financial considerations, many of the delegates stating that their administrations were unable to face the sacrifice of revenue involved. In this connection the term "sacrifice of revenue" means sacrifice of gross revenue, and not necessarily that the carrying of foreign letters at a penny would on the whole result in actual loss through the cost of service being greater than a penny, although it is probable that the cost of a foreign letter weighing as much as an ounce would be slightly more than a penny.[597] The proposal was defeated by eighteen votes to three.[598]
(II) INTERNATIONAL PARCEL POST
The Universal Postal Union as at first constituted provided only for the transmission of what may be regarded in the broad sense as letter post traffic. It made no provision for the transmission in the international service of packages of ordinary merchandise. Such packets could in strictness only be forwarded at the letter rate, which was almost prohibitive; although frequently they were forwarded at the sample rate, in which case the weight of the packet was strictly limited. The French administration proposed, in the project of the Congress of Paris of 1878, to extend in that direction the facilities provided by the Union, by amplifying the definition of samples to include small parcels of ordinary goods,[599] a proposal which was rejected by a majority of the administrations. It was, however, submitted to the Congress under another form. The German administration proposed, not the extension of the sample privilege, but the establishment of a new service, which should provide for the transmission of parcels of general merchandise not exceeding 3 kilogrammes in weight, the parcels to be charged a rate of postage sufficient to reimburse the administrations for the expenses of transmission. Although this proposal was favourably received, many of the delegates had no power to enter into any arrangement of that nature. The question was therefore referred to the International Bureau, with instructions to call a special Conference for its consideration, if on investigation that course should be found desirable.
At this time the circumstances in the different countries in regard to the transmission of small parcels varied. In some a service was provided by the Post Office; in others, the majority, the business was left to the railways or other forms of commercial transport. In all cases the services between different countries were regulated by conventions and agreements on such terms as could be mutually arranged between the contracting parties. In general the rates of postage were based on the rates for inland transmission in each of the countries concerned. They were often extremely complicated, and several administrations had mutually agreed to a uniform rate for parcels not exceeding 5 kilogrammes in weight.
The suggestion for a special Conference was, in general, well received, and the Conference met in Paris in 1880. All the countries of Europe (except Greece), Canada, the United States, Egypt, British India and Persia, were represented. The fact that in many of the countries the Post Office had not at that time undertaken the transmission of parcels was a serious obstacle to the adoption of any sort of general agreement; and on the question of rates there was divergence of opinion whether the principle of uniformity should be accepted, and a fairly high maximum limit of weight conceded at a low uniform rate of postage, in order that the service might be of real advantage to the public, or whether the rates should be graduated according to scales of weight and distance.
The original suggestion had been for a limit of 3 kilogrammes, but at the Conference a proposal for a limit of 5 kilogrammes was submitted. Several delegates were unable to accept the higher maximum, and the limit originally proposed was retained.[600] As regards the rates of postage to be charged there was also diversity of opinion. Some delegates held that the rate should be so fixed as to avoid the possibility of the service involving an administration in